Why should my client consider creating a fund?
- To provide a permanent source of income for their designated charitable purposes in the community.
- To leave a permanent legacy by naming the fund for your client’s family, a loved one, a mentor, a teacher, or a hero.
- To provide a source of income for future needs of your client’s chosen beneficiaries long after their own lifetime.
- To maximize tax deductibility and other estate planning tools in accomplishing their charitable wishes.
Why should my client consider using the Shenandoah Community Foundation instead of establishing a private foundation?
My client (or my client’s family) already has a private foundation. Can they move that over to your community foundation?
How does my client create a fund?
- Minimum gift of $5000.00 (with a gift of at least $500, your client can have up to five years to achieve this minimum)
- No administrative charge to establish a fund
- No legal fees to establish a fund
- No IRS filing, administrative, or investment responsibilities by donor
- Immediate tax deduction in the year of their gift to the Foundation
- 1% annual administrative fee (charged ¼% on the fund balance of each preceding quarter).
- Donor can designate beneficiaries or allow the Foundation board to meet identified community needs.
Are there other estate planning tools my client can use to create or contribute to a fund?
- A Charitable Lead Trust
- A Charitable Remainder Trust
- A Bequest through their will
- An Annuity or other life insurance policy
- An IRA
Is setting up a fund the only way my client can use the Foundation to help the Shenandoah County community?
- Your client may give any amount of money at any time to an existing fund to help it achieve its charitable purpose. Click HERE to see a description of our existing funds.
- Your client may give an unrestricted gift of any amount at any time to the Foundation to support its work in the community. This may be used for any purpose, including administrative overhead, grant-making, educational events, etc.
- Your client may give a gift of any amount at any time to our Unrestricted Grants Fund, our General Endowment Fund or our Founders Fund. Grants from these funds are used to meet community needs identified by the Foundation Board.
- Your client may join with others who share their charitable interest and let the Foundation help them create a movement around that interest.
BOTTOM LINE: Talk to us about your client’s charitable dreams. They may not feel they have a great deal to give, but we can often help them accomplish those dreams by finding others who share them. We connect people who care with causes that matter, and there are lots of people who care who aren’t wealthy.
Does my client have to let you know if they have included the Shenandoah Community Foundation in their will or as a beneficiary of other giving they have in mind?
- It allows us to have a conversation with them and you about their intent and wishes for their gift in the future. Often, we draw up a Fund Agreement that will not be activated or funded until after a donor’s death, but your client will have the peace of mind of knowing that their wishes will be carried out.
- It provides you, your client, and the Foundation with the chance to set things up in accordance with all laws and regulations to most effectively ensure that their wishes are carried out. We work regularly with the legal department of the national Council on Foundations to ensure that we are in compliance.
- It provides further documentation of their wishes in the event anyone should contest their will.
- It helps us with our own planning so we can more quickly and effectively implement their gift when we receive it.